Tata Multicap Fund
Direct · GrowthAI Summary
Tata Multicap Fund has delivered an XIRR of 9.24% over 1 year and 9.49% over 3 years, which is significantly below the category average SIP XIRR of 15.06% and 16.01% for the same periods. Against the NIFTY 50 benchmark, the fund has outperformed with positive alpha across all time frames, with a 1-year alpha of 14.47% and a 3-year alpha of 4.69%, while the benchmark CAGR was -2.9% and 7.75% respectively. The fund's rolling returns (mean) of 7.81% (1Y) and 14.51% (3Y) indicate moderate performance, but the point-to-point CAGR of 11.56% (1Y) and 12.46% (3Y) shows better long-term compounding.
The fund exhibits a maximum drawdown of -22.39% with a recovery period of 474 days, indicating moderate downside risk, and has experienced only one drawdown event exceeding 10%. The Calmar ratio of 0.6082 (1Y) and 0.6203 (3Y) suggests reasonable risk-adjusted returns relative to drawdown, but the average drawdown of -4.55% points to frequent minor declines. With a beta close to 1 (1.0013 for 1Y), the fund moves in line with the market, but its downside capture ratio of 85.09% (1Y) and 94.06% (3Y) indicates it loses less than the benchmark during downturns, while upside capture is slightly above 100% for 1Y and 3Y.
The fund holds a diversified portfolio of 76 stocks, with the top 10 holdings accounting for approximately 25.28% of NAV, led by HDFC Bank (4.27%), Apollo Hospitals (2.76%), and Adani Ports (2.62%). Sector concentration is moderate, with Banks at 19.8% being the largest sector, followed by Healthcare Services (8.5%) and Finance (6.6%), which together represent about 35% of the portfolio. The fund's multi-cap structure provides exposure across market capitalizations, but the top holdings are predominantly large-cap names, which may limit aggressive growth potential.
Tata Multicap Fund significantly lags its category peers, with 1-year and 3-year XIRR of 9.24% and 9.49% versus the category average of 15.06% and 16.01%, respectively, indicating underperformance of nearly 6 percentage points. The fund's calendar year returns show volatility, with a strong 27.33% in 2023 but only 4.42% in 2025 and 5.66% in 2026, suggesting inconsistent performance relative to peers. Despite this, the fund has consistently outperformed the NIFTY 50 benchmark across all time periods, with positive alpha and lower downside capture, which may appeal to investors seeking benchmark-relative stability.
This fund is suitable for investors with a moderate risk tolerance and a long-term investment horizon of at least 5-7 years, as it offers diversification across market caps and sectors. However, given its underperformance versus the category average, investors seeking top-quartile returns may need to consider other multi-cap options. It may be appropriate for those who value downside protection and benchmark outperformance over pure return maximization, but the low expense ratio of 0.5% is a positive for cost-conscious investors.
- Consistent positive alpha over the NIFTY 50 benchmark across all time periods, with 1-year alpha of 14.47% and 3-year alpha of 4.69%.
- Lower downside capture ratio (85.09% for 1Y and 94.06% for 3Y) indicates the fund loses less than the benchmark during market declines.
- Low expense ratio of 0.5% (Direct plan) enhances net returns for investors.
- Significant underperformance versus the category average SIP XIRR, with a gap of over 5.8% for 1-year and 6.5% for 3-year periods.
- High maximum drawdown of -22.39% with a long recovery period of 474 days, which may test investor patience during market downturns.
Generated on 30-08-2026, 3:07 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.74 L | 13.6% | -28.2% | 44.5% |
| 3 Years | ₹36.00 L | ₹41.20 L | 8.7% | 0.9% | 12.8% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 13.6% | 14.4% | 15.1% | -0.8% |
| 3 Years | 8.7% | 11.1% | 16.0% | -2.4% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 13.6% | 10.0% | -8.5% | 37.9% | 0.52 | 1.51 | 81% | — | — |
| 3 Years | 13.9% | 13.9% | 11.6% | 16.0% | 6.87 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +14.47 | 1.00 | 103.8% | 85.1% | 11.6% | -2.9% |
| 3 Years | +4.69 | 1.02 | 100.5% | 94.1% | 12.5% | 7.8% |
| 5 Years | +3.80 | 0.99 | 97.2% | 88.9% | 10.0% | 6.2% |
| 7 Years | +2.63 | 0.99 | 97.2% | 88.9% | 7.1% | 4.4% |
| 10 Years | +1.78 | 0.99 | 97.2% | 88.9% | 4.9% | 3.1% |
| 12 Years | +1.46 | 0.99 | 97.2% | 88.9% | 4.1% | 2.5% |
| 15 Years | +1.16 | 0.99 | 97.2% | 88.9% | 3.2% | 2.0% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | HDFC BANK LTD | 4.27% |
| 2 | APOLLO HOSPITALS ENTERPRISE LTD | 2.76% |
| 3 | ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD | 2.62% |
| 4 | RELIANCE INDUSTRIES LTD | 2.62% |
| 5 | NTPC LTD | 2.40% |
| 6 | AXIS BANK LTD | 2.34% |
| 7 | BHARTI AIRTEL LTD | 2.14% |
| 8 | ICICI BANK LTD | 2.05% |
| 9 | POWER FINANCE CORPORATION LTD | 2.04% |
| 10 | MARUTI SUZUKI INDIA LTD | 2.04% |